2Artificial Intelligence (AI) has been highly convicted

Spending on artificial intelligence could reach an astounding $4.8 trillion by 2033.
Nvidia's GPUs are essential for training and deployment of complex AI models.
AI developers want the best cloud infrastructure, and Amazon is leading the way in this space.
I like it more than 10 shares Nvidia›

By investing in artificial intelligence (AI) stocks, wealth was created. But there is still a lot of space left. For example, the United Nations believes that the AI market will grow from $189 billion worldwide in 2023 to nearly $5 trillion by 2033. Want to see the benefits of your portfolio? The following two AI stocks are for you.

Regarding AI stocks, nvidia (NASDAQ: NVDA) It's the king. Even if you're already familiar with this stock, the stock can be much cheaper than you're aware of.

If you follow the AI market, you will see that Nvidia is the most valuable GPU manufacturer in the world. The GPU sits at the heart of the AI revolution. They are essential for training and deployment of complex AI models. It also allows end users to access these models in large quantities from anywhere in the world.

Currently, Nvidia's GPUs dominate the market. The company has an estimated 90% market share for AI GPUs. The benefits of its performance and ecosystem gave the company the highest gross profit margin in the industry. Wall Street analysts are incredibly excited.

Dan Ives of Wedbush Securities Analyst believes Nvidia's market capitalization will skyrocket to $5 trillion within months. The biggest short-term catalyst: a decision by the US government that will allow Nvidia's new GPU to export to China, a country that previously accounted for around 13% of the company's revenue.

Stocks are expensive based on subsequent earnings, while stocks trade with just 39 times the advance revenue. Given the AI boom will last for more than a decade, we hope Nvidia will maintain double-digit annual growth rate for the coming years. This will quickly dine at the upfront valuation premium, making stocks a relative bargain for patient investors.

AI GPU by nvidia. — Image source: Getty Images.

Except for Nvidia, Amazon (NASDAQ: AMZN) Stocks seem like one of the best ways to invest in the AI revolution over the long term. That's because its most profitable business segment, Amazon Web Services, is at the heart of all AI.

We've already discussed how Nvidia's GPUs sit between AI developers and the end users themselves. But there's another industry at the heart of action. A cloud infrastructure provider. Most estimates consider Amazon's AWS division to be the world's largest cloud infrastructure provider. Data compiled by Statista provides AWS with a global market share of 30%. This is roughly the same as the following two competitors combined:

The data center industry is a little more commoditized than the GPU market, but there is clear differentiation from players who can afford to invest at large. Developers – AI developers in particular – want the best infrastructure possible. This includes most locations from a top hardware and geographical perspective. This makes it faster, cheaper and more convenient for customers.

As the world's largest cloud provider, Amazon is second to none in its ability to invest and expand its network. This should continue to place AWS at the heart of increased spending.

“Companies are spending, they're spending more and they're going to spend more,” Baird analyst Colin Sebastian recently told GeekWire. “We surveyed 100 companies last month, and 87% said they would increase AI Gen spending next year. Zero of 100 said they would reduce spending.”

The AI spending boom is real. Demand should increase by 20% to 30% per year over the next few years. As Amazon trades at 37x revenue, the majority of growth in this sector is masked by the relatively slow growth e-commerce sector. But we found that as AWS becomes a bigger driver of Amazon's overall business, growth will accelerate and become a relative bargain in hindsight.

Consider this before purchasing shares on Nvidia.

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Ryan Vanzo has no position in any of the stocks mentioned. Motley Fool has been working and recommending Amazon and Nvidia. Motley Fools have a disclosure policy.

Two convicted two AI stocks were originally issued by The Motley Fool

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